Vancouver, British Columbia--(Newsfile Corp. - March 25, 2019) - TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) ("TransCanna" or "the Company") recently signed definitive documents to purchase for US$15 million a 196,000 sq ft vertically integrated facility in northern California as announced on March 20, 2018. Included in the purchase is a total of 5.567 acres of land and institutional grade packaging and extraction equipment. The Company retained the services of an independent third-party business valuation firm (the "Firm") to determine the enterprise value of the proposed business to be conducted by the Company on the property. The Firm concluded with a valuation range of US$50 million - $75 million using two different valuation methods to reach their conclusion.
"We are very pleased with the outcome of this valuation and understand now that execution is the key," said Jim Pakulis, CEO of TransCanna. "Our business initiatives are very clear and we look forward to getting the facility operational in the months to come."
The total purchase price for the Property was US$15 million. The Company's CEO paid the seller a US$250,000 non-refundable deposit to secure the property, which has since been reimbursed by the Company, and the Company will pay an US$8 million down payment from the proceeds of the Company's over-subscribed brokered private placement once closed (see news releases dated February 20, 2019 and March 14, 2019). The seller of the building has agreed to a carry back note of US$6.750 million at 7% p.a. interest only for up to thirteen months, with an initial maturity date of October 15, 2019, subject to a six-month extension. See March 20th press release for additional terms.
For further information, please visit the Company's website at www.transcanna.com.
About TransCanna Holdings Inc.
TransCanna Holdings Inc. is a Canadian based company providing branding, transportation and distribution services, through its wholly-owned California subsidiaries, to a range of industries including the cannabis marketplace.
On behalf of the Board of Directors
Chief Executive Officer
Telephone: (604) 609-6199
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Forward-looking statements in this news release include, but are not limited to: the expected purchase of the facility, the terms of the facility acquisition, the payment of finders fees in relation thereto, the ability of the Company to secure financing and the acquisition of appropriate licenses for the facility. Any number of factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although the Company believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/43639